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Solid reporting and not much we didn’t already know. As Philip Maudsley said FY20 feels a world away.
Current trading is very strong and with all the media referencing the retail sector, and in particular online retailing doing exceptionally well, I believe we can look forward with confidence as to how Studio will perform for FY21.
No commentary on progress or otherwise at Education so it would be good to see an RNS on this and if positive, the SP will really move up. I noted Edison guiding us to next Calendar year in this regard which would be disappointing but they do seem to enjoy an inside line at Studio, so I am managing my expectations accordingly.
All things considered though, the current SP looks far too low given our offering and how the company is completely in tune with current and future buying habits.

...to monetising MSAR anticipating breaking into a firm stride in the near future.
It has been a long time coming but my sense of informed optimism is now growing and today’s RNS should be a precursor to further announcements.

A very informative interview and in terms of content, it’s pretty much an RNS.
I am looking forward to the coming weeks and in the meantime, should situations dictate, I will be using the wider market’s negativity and S4 SP weakness, to buy in as I can see these levels as a further opportunity that won’t be available in the near term.

Taken from a recent interview with MS:
“People ask me what motivates me, what drives me, why is it I didn’t retire. One reason is my mother’s genes, that’s a third of it, a third is I didn’t want to retire and play golf and do a portfolio job. And a third is that I have a point to prove.”
The last part to this statement got me thinking. He has repeatedly wasted no opportunity to take a swipe at WPP and given the ego’s involved and the personal score he wants to settle, I sense he won’t rest until he has achieved a market valuation in excess of his former company. He knows time is limited and this is allowing him to indulge in what he does best - buying companies with the right ethos in place to execute rapid growth.
I am reminded of the film, Field of Dreams, and the famous quote that came from it - ‘If you build it, they will come’.

Morning all.
With the above due in the second half of August, I am hoping for some positive news with regards to the sale of Education. Fingers firmly crossed that the CMA’s concerns have been allayed and we can proceed at the agreed HOT.
Notwithstanding the above, I was looking at the recent RNS’s and it is quite possible that we might be close to becoming debt free which would be an incredible achievement and I think fair to say, none of us would have predicted a couple of years back.
Should Education also go through, we would have some serious financial leverage to put towards working capital which when considered alongside the fact that we have now surpassed 2m value seeking customers, leaves us in very strong position going forward.
I am also sure this will have been influential in the change of leadership and Philip Maudsley can move on with his head held high and pat himself on the back for a job well done.
All in all, whilst fully aware of the wider economic woes, good etailers are thriving and I see SRG well placed to follow suit.
I am hopeful for a positive update on all fronts and the SP responding accordingly.....Now wouldn’t that be nice and for us LTH’s a welcome and long overdue relief!

MS was interviewed this morning as part of a segment discussing future working environments with a particular leaning towards London and large cities Worldwide. It was quite interesting but the one takeaway for me was him referencing a large contract with a US Telecoms company which he couldn’t name owing to an NDA.
This is separate to the two Whoppers he has referenced previously as it doesn’t conform to the sectors he stated they were operating in. A man of his position wouldn’t have gone out of his way to introduce this into such an interview unless he absolutely wanted it to be known, so I think we can assume with some confidence there has been a further Whopper landed.
A further consideration to the strong SP is that the other companies we are looking at ‘Merging’ with may well want to accelerate doing so for fear of missing out on the future reward.

Could the strength of the SP over the past few days be owing to an imminent and positive update on the the 2 Whoppers S4 have been pitching for and which MS consistently referenced Over the last month?

What Is really impressive is MS’s ability to attract well run companies that could continue to be profitable independently but are happy to buy into the future vision he is clearly articulating to the CEO’s and their partners. The very fact that they are accepting a mix of cash and shares should tell us all we need to know. These people have a clear view of the future and are very happy to continue to have skin in the game whilst understanding what can be achieved through collaboration of some of the best and most fertile brains in the world of advertising. I can’t help but admire MS’s ability to pull this together and is endorsed by some very, very wise people recognising what he is doing and jumping on board.
The phrase ‘follow the money’ could never be more apt here and today’s deal underscores this in droves. I accept the price has not been confirmed but MS would not have signed off unless he felt it as EBITDA enhancing.

There still appears to be a sustained and strong appetite for large buy orders to go through all of which continues to bode well for the immediate future. Despite the recent rises and what would be an understandable desire by some to take profits, most appear happy to hold and enjoy the ride.
Standby for a large merger announcement, and hopefully news on landing the two ‘whoppers’. Now wouldn’t that be welcome news.

Intrepid.
My internet has been really hit and miss over the past few days meaning having to resort to using my phone.
I therefore missed your post which having now read, I do understand and have sympathy towards.
By way of balance, I would only offer that I believe MS has a particular and urgent merger in mind and needs the funds to conclude it. Doing it this way is the quickest and most effective way in achieving it and with the bigger picture in mind, should enable us all to benefit from MS,s earnings enhancing deal making skill set whilst, reassuringly, allowing us to sleep easy at night in the knowledge that he won’t compromise the balance sheet.
I appreciate he benefits from more than probably all of our combined wealth here but he is putting the ‘Family Trust’ money ‘On Risk’ here. I have been really taken by how he has drawn back in some fantastic talent that he has worked with before with rumours of more to come. These individuals are not daft and have a clear and unique understanding of his drive and abilities to ‘buy in’.
I for one am happy to continue to be invested and have bought 4 times in the past 3 months and don’t want to dwell on a hindsight annoyance that, yes, I could have further benefitted from and would have been nice to do so. This company is heading only one way and I trust MS entirely to make the right decisions at the right time.

Huge vote of confidence from the team that is driving the business forward by buying at these levels. NO discount to the previous SP for the placing which says it all.
If we land either of the two ‘whoppers’ we are pitching for, stand by for further positive sentiment. In the meantime in excess of £100m raised at this level owing to over subscription and for growth and imo, identified and in play by way of merger partners will all be announced very shortly.
Onwards and upwards.

https://www.mediapost.com/publications/article/353555/martin-sorrells-disruption-strategy.html

MS has confirmed everything I thought he was doing and what motivates him going forward. I really like the comment about ‘skin in the game’ and confirmation that if you are looking to be bought, we are not for you....
Nothing goes exponentially up but this company looks to be doing all the right things in all the right places under the stewardship of someone whose credentials are imo, unquestionable. If anyone can show me a similar value driven investment, I would welcome the opportunity to hear from them.

PIP has been on my radar for a similar amount of time albeit it’s a small part of my portfolio.
I believe it’s currently as well placed as it can be to finally blossom and with the Goverment going down a path of infrastructure growth, this should bode well. The balance on the negative side has to come from the automotive sector but this should recover with the passage of time.
It’s never been straight forward here but I feel more positive than at any time in the past.

Yes Bunker, please do come in but maintain your social distance!

I am particularly drawn to the last sentence and referencing the word ‘explosive’. He is a marketing man at the end of the day but would also choose his words very carefully as the repercussions of overstating won’t be lost on him:
Sorrell said: "Covid-19 has clearly accelerated the existing digital transformation trends affecting consumers, media owners and enterprises. As a result, data analytics will be even more important as marketers seek to fast-track digital transformation plans and we have certainly seen that in the explosive demand from our clients for these services."

.... appointment as Non-Exec is a superb move by MS.
They know each other inside out and his network of contacts will be invaluable to S4 opening further doors.
The company just gets stronger by the day. Exciting times to come.

Mandraj, if you check the execution price of the buys orders going through, the spread is much narrower.

A very reassuring update when taking stock of the current climate.
Some particularly strong positives with the balance of disappointment surrounding the Phase 2 referral by the CMA which having done a quick read up on the inner workings of, I believe could extend the final decision by a further 25 weeks.
The Board come across as having a good steady hand on the tiller and our offering is now reaching out to over 2m customers which is a significant milestone and bodes well for Christmas trading.
Despite the obvious wider concerns, the UK’s appetite to shop has been well chronicled in recent days and future for STU looks in good hands and set to blossom.

I am not a chartist by any stretch of the imagination but couldn’t help notice that if you take a look at the SP graph over the past year and remove the ‘Covid effect’ section from 21st Feb to 21st May, it merely tracks a sensible upward trajectory which given the business plan and results advised so far, looks like it is trading within itself, so whilst some commentators may choose to focus on the fact it has doubled in price from being below £1.30 only a few weeks ago, the reality is that S4 is simply trading largely as anticipated by the Board and continuing to grow aggressively in what was a very relative and compelling business environment before Covid 19 but is now probably accentuated given what decisions Global CEO’s are now facing going forward.
I don’t like to get involved in the chat about where the SP will be in however long but as an investment, I am 100% convinced I have invested at the lower end of where this is heading.

Very happy with the presentation.
Everyone is clearly focused on creating a hugely successful company and what struck me was just how energised and excited the Board are by the pace of change they are effecting and the recognition they are getting for what they can deliver on from their existing and future client base.
Google is S4's biggest client contributing to 25% of our revenue which I would be more comfortable if this was c.10%, thereby reducing our reliance on one client . Going forward, they have pitched for two 'Whoppers' (their terminology, not mine) which they term as equal to 5% + of our revenue, so, if these are landed and it becomes public knowledge, I would expect the SP to head north again.